Latest news with #LM-299
Yahoo
15-07-2025
- Business
- Yahoo
Cancer drugmaker LaNova to sell to China's Sino Biopharm
This story was originally published on BioPharma Dive. To receive daily news and insights, subscribe to our free daily BioPharma Dive newsletter. LaNova Medicines, a cancer drugmaker that previously licensed medicines to Merck & Co. and AstraZeneca, has agreed to be acquired by Sino BioPharmaceutical in a deal worth up to $950.9 million. In an agreement disclosed Tuesday, Sino BioPharm will buy the approximately 95% of LaNova it doesn't already own. Accounting for LaNova's cash holdings, the net payment made by Sino Biopharm will total about $500 million. Once the deal is complete, LaNova will become a wholly owned subsidiary of Sino Biopharm, which previously invested in LaNova's Series C1 financing that was announced last October. LaNova was founded in Shanghai a little less than six years ago. In the time since, it has built a pipeline that includes eight clinical-stage compounds, including two licensed by AstraZeneca and Merck & Co. in 2023 and 2024 deals, respectively. The company's emergence parallels the rapid gains made by China's biotech sector, which in the span of a decade has gone from a copycat factory to an innovative hub that regularly designs drugs attractive to multinational pharmaceutical firms in the U.S. and Europe. AstraZeneca's deal involved an antibody-drug conjugate, or ADC, that LaNova designed to bind GPRC5D, a protein target rising on the radar screens of companies developing medicines for multiple myeloma. That pact handed LaNova $55 million upfront. Then, last November, Merck bought rights to LaNova's LM-299, a bispecific antibody aimed at the cancer drug targets PD-1 and VEGF. This kind of antibody is newly of interest after the success of ivonescimab, a similarly structured drug that outperformed Merck's dominant immunotherapy in a head-to-head lung cancer study. Merck paid LaNova $588 million in upfront cash to license LM-299. Beyond those two medicines, LaNova is also testing an antibody targeting the protein CCR8 for use in gastric cancer and other solid tumors, as well as an ADC aimed at Claudin 18.2. The latter drug is in Phase 3 trials in China, while the former is in Phase 2. Recommended Reading 'The bar has risen': China's biotech gains push US companies to adapt
Yahoo
01-04-2025
- Business
- Yahoo
Large pharma drug licensing from China hits high at 28% in 2024
Licensing agreements for Chinese drug candidates have surged, with large pharma in-licensing 28% of innovator drugs from Chinese biopharma companies in 2024. The total deal value of innovator drug licensing agreements involving Chinese biopharma licensors has surged 66%, from $16.6 billion in 2023 to $41.5 billion in 2024, reaching a five-year high, according to GlobalData's Pharma Intelligence Center Deals Database. Increased Chinese government investments in biopharma innovation, faster and more affordable clinical trials and improved drug quality all make licensing from China more efficient and cost-effective. Biopharma companies globally have turned to licensing agreements as a strategy to access innovative drugs and strengthen pipelines as merger and acquisition investment declined in 2024. However, the proposed US BIOSECURE Act (potentially to be enacted in 2025) would prohibit federal funding for US biotech using Chinese biotech services. Additionally, the America First Investment Policy (announced on 21 February 2025) aims to restrict Chinese investments in the US biotech sector and proposes tariffs on China that could further strain supply chains and increase costs. These measures could increase geopolitical tensions, limiting Chinese biopharma's access to US funding, partnerships and market opportunities. US licensing of innovator drug candidates from Chinese biopharma companies has grown since 2020, with total deal value for these agreements surging 280%, up from $15.7 billion in 2023 to $21.3 billion in 2024. The top three therapy areas involving innovator drug licensing were oncology, immunology and metabolic disorders in 2024 (totalling $22.2 billion), according to GlobalData's Pharma Intelligence Center Deals Database. In December 2024, Merck expanded its oncology pipeline, licensing LM-299, a Phase II PD-1/VEGF bispecific antibody, from LaNova Medicines in a deal worth up to $3.28 billion. Biopharmaceutical companies increasingly focus on licensing monoclonal antibodies and antibody-drug conjugates (ADCs), expanding their portfolios with advanced targeted therapies. Monoclonal antibody licensing from China rose 43% to $11.3 billion, while ADC licensing grew 10% to $10 billion in 2024. In January 2024, Novartis signed a $4.35 billion deal with Shanghai Argo Biopharmaceutical, securing an exclusive licence outside Greater China for a Phase I/IIa cardiovascular asset and a global licence for another Phase I asset, with options for two more. The agreement reflects large pharma leveraging small interfering RNA (siRNA) and RNA technology for targeted therapeutics. US biopharma companies may face restrictions on acquiring Chinese drug candidates if drug licensing is part of the America First investment policy, potentially slowing innovation within US pipelines. Meanwhile, rising trade barriers, including a 20% tariff on Chinese goods and a potential 25% tariff on pharmaceuticals, could further increase costs, ultimately leading to higher drug prices. While China remains a hub for biopharma innovation, regulatory shifts may disrupt cross-border partnerships and reshape how US companies access Chinese drug candidates. "Large pharma drug licensing from China hits high at 28% in 2024" was originally created and published by Pharmaceutical Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
